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More people using credit

December 19, 2011

Some of the largest credit card firms in the world recently stated that the number of loans being taken out by customers has increased as of late, leading many to believe that better days are ahead for merchant services companies.

Some of the largest credit card firms in the world recently stated that the number of loans being taken out by customers has increased as of late, leading many to believe that better days are ahead for merchant services companies.

Discover Financial Services, Capital One Financial and American Express each stated that balances from cardholders were higher than in previous reports, The Wall Street Journal reports. Part of the reason for the uptick in new debt being taken on could be from more mailers being sent out by the companies. According to Mintel Comperemedia, companies sent out a total of 1.34 billion offers to customers during 2011.

“It’s all about the battle for share of wallet,” said Andrew Davidson, senior vice president of research firm Mintel Comperemedia, in an interview with the newspaper. “These companies that are competing at this level are making an investment in trying to obtain a customer for the long term. It’s all about the lifetime value of the customer.”

While some consumers and businesses have been slow to take on new debt during the financial crisis, some are taking advantage of offers from well-known financial institutions.

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